Finance
Audi cuts forecast over US tariffs and restructuring costs
Published by Global Banking & Finance Review®
Posted on July 28, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 28, 2025
2 min readLast updated: January 22, 2026
Audi revises its financial forecast, citing US tariffs and restructuring costs, impacting its revenue and operating margins.
By Amir Orusov
(Reuters) -German automaker Volkswagen's premium brand Audi lowered its full-year financial guidance on Monday, citing the impact of higher U.S. import tariffs and ongoing restructuring costs.
The Ingolstadt-based company now expects revenue of between 65 billion euros and 70 billion euros ($76 billion and $82 billion), down from its previous forecast of 67.5 billion euros to 72.5 billion euros. Audi also cut its operating margin forecast to 5% to 7%, compared to the earlier range of 7% to 9%.
Audi said it is still assessing the implications of the trade deal reached between the United States and the European Union on Sunday.
The agreement set a 15% baseline U.S. tariff on imports from the EU, including cars, which had previously faced customs duties of 27.5%.
"Should the 15% tariff stay in place long-term, it would still put Audi at a competitive disadvantage, because its key peers have a more pronounced U.S. production footprint," said Fabio Hoelscher, an analyst from Warburg Research.
Audi is among the carmakers most exposed to U.S. tariffs as it has no manufacturing facilities in the United States.
Although the deal provides clarity on the new tariff regime, enabling better operational and strategic planning, the 15% rate still represents a structural shift from the 2.5% rate before U.S. President Donald Trump took office, said Pal Skirta, equity analyst from Metzler Equities.
That leaves German carmakers facing persistently higher U.S. tariffs on their exports and long-term competitiveness challenges, he said.
The Volkswagen Group also cut its full-year guidance on Friday after taking a $1.5-billion tariff hit in the first half of 2025.
Global automakers have booked billions of dollars of losses and some issued profit warnings due to U.S. import tariffs. The European industry is also facing stiffening competition from China, and domestic regulations aimed at speeding up the electric-vehicle transition.
($1 = 0.8535 euros)
(Reporting by Christina Amman and Amir Orusov; Editing by Rachel More and Joe Bavier)
Audi now expects revenue of between 65 billion euros and 70 billion euros, down from its previous forecast of 67.5 billion euros to 72.5 billion euros.
The 15% tariff on imports from the EU puts Audi at a competitive disadvantage because it has no manufacturing facilities in the United States, unlike its key peers.
The previous tariff rate was 2.5%, which has now shifted to a baseline of 15% under the new trade deal.
German carmakers are facing persistently higher U.S. tariffs on their exports and long-term competitiveness challenges due to the new tariff regime.
Global automakers have booked billions of dollars in losses and some have issued profit warnings due to the impact of U.S. import tariffs.
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